Cruise and airline stocks continued to rise, with Norwegian Cruise (NCLH.US) up over 8%.

On Wednesday, cruise and airline stocks continued to rise, with Royal Caribbean Cruises (RCL.US) up more than 3.7%, Carnival Cruises (CCL.US) up more than 5%, and Norwegian Cruise (NCLH.US) up more than 8%; American Airlines (AAL.US) up more than 1%, Delta Air Lines (DAL.US) up more than 1.7%, United Airlines (UAL.US) up 0.27%. On the news front, Citigroup was bullish on Norwegian Cruise and Royal Caribbean Cruises, upgrading Norwegian Cruise's rating from "neutral" to "buy", noting the stock's potential for significant earnings growth and multiple expansion. The firm's analyst James Hardiman said the company's strategic shift convinced the firm that the huge pricing opportunity would not be offset by out-of-control costs. Hardiman estimated a three-year compound annual growth rate of 23% for the cruise operator's earnings per share. If Norwegian Cruise can maintain its 2.5% earnings/cost differential target, the EPS growth rate could reach 30%.